FATF Acknowledges India’s Efforts To Recover Public Assets
The 340-page report, titled “Asset Recovery Guidance and Best Practices,” cites India’s anti–money laundering mechanisms used to secure assets worth crores of rupees in diverse situations, domestic, international, urgent recovery cases, and those involving fugitives who fled the country after committing financial frauds
NEW DELHI: The latest report of the Financial Action Task Force (FATF) has acknowledged India’s legal and enforcement efforts in recovering public assets defrauded through financial crimes.
The report highlights several money laundering investigations undertaken by the Enforcement Directorate (ED) to recover defrauded assets but does not identify the parties involved.
The 340-page report, titled “Asset Recovery Guidance and Best Practices,” cites India’s anti–money laundering mechanisms used to secure assets worth crores of rupees in diverse situations, domestic, international, urgent recovery cases, and those involving fugitives who fled the country after committing financial frauds.
Headquartered in Paris, the FATF sets global standards for combating money laundering and terrorist financing.
“The report outlines practical measures for policymakers and practitioners to identify, trace, freeze, manage, confiscate, and return assets derived from criminal activity. The guidance serves as a benchmark for countries to enhance their national frameworks and align with emerging best practices,” the ED said in a statement.
The report cites several Indian case studies, including: restoration of assets to victims of the Rose Valley Ponzi scam, a drug trafficking case referred by the United States, in which the ED seized Bitcoins worth ₹130 crore, a case where the ED and Andhra Pradesh Police CID coordinated to restore assets worth ₹6,000 crore to victims of an alleged investment fraud.
Another cited case under the Prevention of Money Laundering Act (PMLA) involves an alleged fraud and diversion of public funds in a Maharashtra-based cooperative bank. The ED restored benami assets worth ₹280 crore to compensate victims after auctioning the properties.
Officials said the FATF report noted that the confiscated properties have been earmarked for infrastructure development, including the construction of a new airport, benefiting society at large.
“India’s contribution to this global effort has been substantial and widely acknowledged. Drawing from the PMLA framework and its operational experience, the ED’s inputs helped shape key aspects of the guidance related to value-based confiscation, provisional attachment, and inter-agency cooperation,” the agency said.
The ED added that the inclusion of Indian examples in the FATF report underscores the credibility of India’s enforcement mechanisms and the value of its experience in shaping future global standards. According to the FATF, the report aims to bring tangible improvement in the asset confiscation and recovery processes of enforcement agencies worldwide.
